Nokia to sell and lease back Finnish headquarters | Technology | The Guardian Nokia Nokia to sell and lease back Finnish headquarters Ailing mobile phone firm to offload Nokia House in Espoo for €170m but will stay on as tenant in drive to slash costs Nokia headquarters in Espoo, Finland. The struggling mobile phone company, a former market leader, has operated there since 1997. Photograph: Markku Ojala/EPA Tuesday 4 December 2012 12.43 EST First published on Tuesday 4 December 2012 12.43 EST Close This article is 4 years old Nokia is selling its Finnish headquarters for €170m (£137m) and leasing the property back on a long-term deal. The struggling mobile phone company has operated in the glass and steel building in Espoo near Helsinki, known as Nokia House, since 1997. The sale is another step towards reducing costs and concentrating on its core business. Nokia has spent almost a third of its cash reserves in 12 months, and in October had about €3.6bn left in the bank to turn itself into a smartphone manufacturer capable of competing with Apple and Samsung.

According to Gartner, the market researcher, Nokia slipped to seventh in smartphone sales in the third quarter from third in the previous quarter. The company has pinned its hopes on the new Lumia 920 and 820 series of smartphones, which run the latest version of Windows Phone software. They have been on sale in the UK for about a month as the company targets the Christmas gift market. "The holiday shopping period will be crucial for Nokia", said a Saxo Banque trader. Nokia, a former leader of the mobile market, has lost almost 90% of its stock market value since Apple introduced the iPhone in 2007. Six successive quarters of losses since adopting Microsoft's Windows phone software have led it to announce 10,000 job cuts . Nokia plans to save €1.6bn by the end of 2013. To reach its goal, the mobile telecoms equipment maker Nokia Siemens Networks (NSN) said it was selling its optical-fibre networks unit to Marlin Equity Partners. The joint venture between Nokia and the German industrial group Siemens has been a drain on profits for its owners and is undergoing a massive restructuring.

How Did Nokia Succeed in the Indian Mobile Market, While Its Rivals Got Hung Up? - Knowledge@Wharton How Did Nokia Succeed in the Indian Mobile Market, While Its Rivals Got Hung Up? Aug 23, 2007 Quote By most accounts, India is among the world’s fastest-growing markets for mobile phones. The country has some 170 million subscribers and adds 6 million to 7 million more each month. (China, in contrast, adds 5 million subscribers, and the U.S. 2 million subscribers a month.) Recognizing this potential, several global telecom giants jumped into the fray when the Indian government first opened up the country’s telecom market to private enterprise in 1994. Among them, one company — Finland-based Nokia — forged ahead of rivals and today commands a 58% market share for mobile phones (also called “handsets”). In specific segments, such as GSM telephony, Nokia’s market share in India is as high as 70%.

(GSM, which stands for Global System for Mobile, is the world’s most popular standard for mobile communications.) How did Nokia take the lead in the Indian mobile phone market, ahead of companies such as Ericsson, Motorola, LG and Samsung? According to company executives and industry experts, Nokia’s strategy combined focusing on the mobile phone market, establishing crucial distribution partnerships, making early investments in manufacturing and brand-building, and developing innovative product features — such as mobile phones that could double as flashlights. Ravi Bapna, professor of information systems at the Indian School of Business in Hyderabad, says, “As far as Nokia’s India strategy is concerned, the numbers speak for themselves. The company is a key cog in India’s wireless value chain, and it has used India as its emerging market lab.” The Power of Focus D. Shivakumar, Nokia India’s vice president and country manager, believes that focus played a key role in the company’s growth in India. “If you look at the [mobile phone] landscape in 1995, anybody could have succeeded if they had done the same things as Nokia did,” he says. “But all the other companies had something else to focus on, some other business.

Nokia was completely focused on mobile phones; others had consumer electronics, home appliances, etc.” Nokia’s focus was not just on handsets, of course. The mobile infrastructure business — then part of Nokia India — was equally important. But, as of April 1, 2007, Nokia’s joint venture with Siemens for mobile infrastructure has become an independent entity. Thus, Nokia India has become even more sharply focused. Being ahead of the curve was another component of Nokia’s strategy. “We invested before everybody else — in the brand, in people, in distribution,” says Shivakumar. Adds Pankaj Mahendroo, president of the Indian Cellular Association: “Nokia invested in each vertical of the handset ecosystem — manufacturing, distribution and design R&D.” Nokia has invested more than $1 billion in India so far, and company headquarters at Helsinki has repeatedly said that more funds will be made available if required. The Indian company had revenues of more than $3.5 billion in 2006, which means there is also money to be reinvested. (The company does not disclose its profit numbers.) The Distribution Edge Investment in people is difficult to judge; every company claims to have the best talent in the business.

But when it comes to distribution, Nokia’s lead is clear. Today, India has some 95,000 outlets that sell mobile phones. “In 50,000 of them — and that’s a conservative estimate — only one brand is available, Nokia,” says Shivakumar. Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. “Both companies realized that there was a tremendous growth opportunity and it was best that we utilized the resources of both organizations in an optimum manner,” says Nokia India director of sales Sunil Dutt. “We decided that we would address some markets jointly, and that we would individually address some of the other markets.” While Dutt does not spell out how the two partners will divide the markets, some clues exist in the way demand is shaping up. In the cities where the market is maturing, buyers are looking at more sophisticated mobile phones, such as Nokia’s E-series phones (which serve business users) and the N-series (which have multimedia features).

In rural India — which constitutes 70% of the population — affordability is an issue. So there is a different range for this constituency. Sponsored Content: The price points sometimes dictate the type of outlet. “As the [telecom] operator footprint expands into different markets, all kinds of retail outlets get into selling mobile phones and airtime connections,” says Dutt. “People who have been selling consumer electronics, STD booth owners and even cloth merchants get into this business.” A stationery store stocks mobiles in a corner; a mom-and-pop grocery store moves beyond rice and lentils. “Then there are people with existing businesses who decide to set up a separate shop only for mobile phones,” he continues. “And why do they feel the need to set up a different outlet? In this business, customer engagement … requires a completely different approach. Even the retail outlets realize this and [have started] separating the two businesses.” Dutt notes that in the mature urban markets, “such as the metros and Tier I towns where mobility has been around for a few years, customer expectations are more evolved, and are continuously evolving.

Our task here is to provide our people with relevant competency and skills sets.” Nokia has begun to set up concept stores — seven so far — in Indian cities. “At our concept stores, we have tried to bring to life all the experiences that we offer at Nokia experiential zones across the world,” he adds. Investment in Manufacturing The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centers and labs in India. More importantly, it established a $150 million handset manufacturing facility in Chennai in 2005. The total production at this unit has crossed 25 million handsets. “Some 30% of our production is being exported to neighboring countries,” says Sachin Saxena, Nokia India director of operations in charge of the factory. Other companies, such as Motorola, LG and Samsung, have also lined up similar investments or are in the process of setting up manufacturing units, but Nokia has had a clear head start. Also, the Chennai factory is devoted to handsets, whereas other companies are planning to make a whole range of consumer electronics products.

“Domestic manufacturing has worked to Nokia’s advantage,” says Ravinder Zutshi, deputy managing director, Samsung India Electronics. “Samsung India is looking at making its Chennai facility a global hub for its consumer electronics products.” Industry analysts note that Nokia’s strategy is potentially risky. When the going is good — as it is now — the company can do well. But Samsung’s approach is more flexible, these analysts note. If demand for mobile phones were to slump, Samsung could switch its manufacturing lines to other products. In contrast, Nokia India’s focus on mobile phones mirrors the priorities of its parent company. Nokia traditionally was in a whole range of businesses — from toilet paper to power. But in 1993, CEO Jorma Ollila decided to sell off everything else and concentrate on mobile telephony. Building the Brand Another crucial aspect of Nokia’s investment strategy focused on building its brand. Here, the company ran into a problem. The Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end. Marketing theory says a brand cannot be all things to all people.

This is the reason that Hindustan Unilever, with quality built around its brand, refused to match Nirma, which came out with a cheap detergent. This is also why Eveready, the battery manufacturer, refused to lower prices when faced with a Chinese challenger in the dry cell market. But Nokia has a problem promoting other brands under its corporate umbrella. “Unlike the FMCG (fast-moving consumer goods) market — where the product lifecycle is at least 10 and sometimes 50-100 years — models have a lifespan of 15-24 months here,” says Devinder Kishore, Nokia India’s director of marketing. With such a lifecycle, promoting various models would mean watching money go down the drain in a couple of years. Instead, Nokia is promoting platforms — music, for instance. With this approach, one model can replace another while the branding remains the same, or is extended slightly with the E series and N series. “Nokia has done well to focus on the ‘mother’ brand rather than on ‘another’ brand,” says Jagdeep Kapoor, chairman and managing director of Samsika Marketing Consultants.

Kapoor, who has written several books on brand management, says that Nokia has understood the Indian market by straddling all segments: the high, the middle and the low end. “The company has created a ladder for consumers to climb from the low end to the middle end to the high end, while being fully assured that they will be with the mother brand Nokia.” Kapoor views the Nokia brand in terms of his proprietary “REAPS” model, which takes into account five needs — rational, emotional, aspirational, physical and spiritual — of the Indian consumer. “Nokia as a brand has been able to address all the five needs to various degrees at various stages,” he says. “The rational need of quality versus price has been met across price segments with options. The emotional need of being able to keep in touch with near and dear ones during times of joy and sorrow is being adequately fulfilled. The aspirational need with the new models and features and the look-good approach has helped the brand become a sought-after, must-have brand. The physical need has been taken care of through size and comfort.

And, finally, the spiritual need has been met through (local) languages and people –whether they are 18 or 80 — being able to greet one another via SMS [text messages] during religious festivals.” ISB’s Bapna offers a prescription for Nokia. “Going forward with the premise that the mobile infrastructure will serve as India’s information infrastructure — given the lack of substitute physical and digital infrastructure — I would encourage Nokia to take a more active role in nurturing content and application-creation communities that bring a range of services to all layers of the population,” he says. “It’s in [Nokia’s] own interest to do so.” Products for India The Nokia story in India has not been about grafting a model that has worked abroad. In fact some of its models — the handsets, not the strategies — are unique to India. Consider this example: It would probably be inconceivable to mobile phone users in the U.S. or Europe that their mobile phones should incorporate a flashlight, or torch. But in India — where large numbers of the rural population do not have electricity, and power cuts are commonplace even in the cities — having a torch built into a mobile phone is a distinct and tangible benefit.

The Nokia 1100, the first made-for-India phone, has been a runaway success. Manufactured at Chennai, it is also being exported. The 1100 incorporates a torch, an alarm clock and a radio. “Innovation is something which consumers reward in this market,” says Shivakumar. Similar plans are in the works at Nokia’s three India R&D labs, which employ 700 people. For obvious reasons, most of the activity is under wraps. Nokia is, however, willing to talk about the “shared” phone. This is, again, something that mobile phone users in affluent countries might find puzzling, but the concept is simple. For reasons of affordability, in rural areas a phone may be shared by several people. The models being launched to cater to this need will have separate address books, individual billings and more. Will it work? People initially doubted the torch phone, too, but it became a popular product. Shivakumar offers some reasons to explain why he thinks the Indian market is different and needs out-of-the-box thinking. “Fundamental consumer differences exist between India and other countries,” he says.

“A cell phone is a huge style icon for the Indian masses: 62% of Indians buy a cell phone because of its looks. That is something that is not true anywhere else in the world. It’s as huge a style statement as your watch, pen, cufflinks or bag. Hence, the brand matters quite a lot. “Second, it is a safety product for women in small towns, because with a cell phone you are in touch all the time; you’re accessible. Next, it is a huge productivity vehicle. When somebody calls you, you do not need to take your bike out; you don’t need to take your car out. You make a phone call and it’s over. “It is also a driver of a lot of economic activity. If you go down the roads of Gurgaon and Delhi, you will find that lots of people have written their [mobile] phone numbers on the walls — a plumber, an artisan, a carpenter, a tailor. I think the whole service sector has gotten a huge lift, thanks to this. This has killed the visiting card business…. It is also the ultimate entertainment device. You have music on it now, in terms of radio and stored music.

The day is not far when you will see movie clips and TV. One of our products has that, so that’s TV on the go.” An Expanding Market The Indian market for mobile phones, in addition to its base of 170 million subscribers, is also one of the most cost-effective in the world. Call rates in India are among the lowest anywhere — making a mobile phone call costs two cents in India, compared with about four cents in China. The market also has tremendous growth potential. So far, most of the growth has been penetration-led, which means placing devices in consumers’ hands. The bulk of the growth going forward will be replacement-led, where consumers come back for more. In India, consumers tend to change their phones faster than in most other places. And whenever they change their phone, 60% are willing to pay a higher price. Shivakumar offers examples of future services that might be delivered over cell phones. “The cell phone could be the future bank — a full branch of the bank. You don’t need 20 people, a security guard or a vault. This is a passbook plus bank rolled into one.

It can be your payment system.” Another possible use is navigation, where cell phones could be used to provide maps of an area where the user is based. Such services, whenever they are launched, could help Nokia keep going and growing in India. Citing Knowledge@Wharton Nokia Canada Contact & Customer Service | Customer Care Contacts Nokia Canada Contact & Customer Service 12 Comments Nokia Canada Contact: Find below customer service details of Nokia mobiles in Canada, including phone and address. You can reach the below contact for queries on Nokia phones, repair, service center location, technical support or complaints on Nokia phones in Canada. Customer Service Phone: +1 604 456 5400 2) 1100 de la Gauchetiere West H3B 2S2 Montreal, Canada _____ Nokia Stores / Service Centers Click here to locate a Nokia retail store or service center nearest to your street in Canada. You can visit a local Nokia retail store to purchase Nokia smartphones or other products. Nokia Applications To download Nokia mobile applications, maps, games and more click here Nokia Ovi Store . Software Update To receive software updates for your Nokia phone click here . About Nokia Nokia was founded in the year 1865.

From being a riverside paper mill, Nokia grew over the years to become one of the leading telecommunications company. More than 1.3 billion people use Nokia phones worldwide. Nokia began operations in Canada in the 1970s. Canada was the first international operation of Nokia after Finland. The first mobile phone launched in Canada was the Nokia Talkman. The company in fact was the first in the country to launch an SMS-enabled phone, QWERTY phone and a camera phone. Nokia Canada’s headquarters is located in Ajax. Nokia’s Nseries mobile (N95) was launched in the country in the year 2008.

Popular Nokia devices found across stores in Canada include Nokia X7, X2, C2, C5, C6, Nokia C3 Touch and Type, C7, E73, Nokia N8, E5, Nokia 7230, 6700 slide, 2220 slide at chatr, Nokia C3 at chatr, Nokia 1616, N97, Nokia 5230, 6350, 6750, Nokia Surge, Nokia 5800 Xpress Music, E72, 3710 fold, Nokia 7020, 2730 classic, Nokia N97, Nokia 1661, E71, 1680 classic, Nokia 6301 and 2630. You can see more models on the Nokia website. You can also filter devices through features such as Bluetooth, internet browser, email, 3G, music player, camera and video recorder.

Read More This article has 12 comments Robert Reply I called customer service today to resolve an issue with my US purchased unlocked windows phone which i have successfully used in Canada for the past three years. It had locked itself after being out of the country and not used for 2weeks. After explaining the issue to a Microsoft representative in Canada. i was put on hold “for a few minutes” as she checked with a supervisor. After 1 hour and 15 minues on hold with no response, the call was transfered and i found myself speaking to the U.S office. The US office representative stated they don’t deal with Canadian customers, and without hearing me out proceeded to transfer me back to Canadian office.. WITHOUT QUESTION, THE ABSOLUTE WORST CUSTOMER SERVICE EXPERIENCE I HAVE RECEIVED FROM ANY COMPANY IN ANY COUNTRY I HAVE EVER DEALT IN. IF THIS IS THE WAY MICROSOFT TREATS THEIR CUSTOMERS ON BOTH SIDES OF THE BORDER, YOU THINK I WOULD EVER CONSIDER PURCHASING ANY OF THEIR PRODUCTS OR SERVICES AGAIN?!!

Robert To add insult to injury, i drove to Nokia’s office yesterday (address listed above) to try to resolve the issue with my phone, only to discover the office has not been there for 4 years! Talk about dated information! Mike Tropp Reply I cannot find a support contact for Nokia in Canada. The numbers listed on the Nokia website are either no longer working (Vancouver), or to a Microsoft recorded message to go to a Microsoft website, or to an incomplete number in Toronto. Buy another brand! Gabriel Reply Please am using nokia lumia,but I can’t access the play store on it.when I tried to login to the play store it tells me that the windows is not activated and I need to enter the activation code which I don’t have. Please kindly send me the activation code through my email. Thank you. Jacques Reply i bought this lumia phone around 5 months back and buttons are not working. The agent said It looks like a hardware problem and asked to send it in. Then, Nokia refused to fix it though it is under 1 yr warranty bec the phone came with windows 8 and now has windows 8.1 os.

I paid $30 for shipping and have the phone returned in the same broken condition. They cannot honor their warranty. I don’t recommend Nokia phone to anyone. Cheap stuff for parts and very poor customer service. Patti Reply I have been trying to make contact with you but your system is NOT accepting my serial number number. I have tried 4 times. What should I do? It is definetly the right number and I need to speak to a live person. 604-271-5388 Reply Hi, I write with deep regret. I made the decision to give up on Iphone and give Nokia a whirl. I have the phone no longer than 4 weeks. I dropped it from no more than 40 centimetres. Whilst I accept it was my fault dropping the phone, I really would assume it to have better durability. I dropped my I phone many of times and it never shattered. It even bounced on a few occasions. I am not told it will cost me $275.00 to repair. Needless to say I will be taking myself back to Iphone and not recommending the product.

If you are going to make a product that is pretty much cheap and breaks at the first opportuntity at least offer a reasonable cost of repair. I am a very unhappy customer. I love the phone and really thought Nokia had nailed it with this one, but after 4 short weeks it seems my friends were correct and I should have stuck to the Iphone. Derek Sampson Reply I have been having significant problems with my new Nokia phone and the support is extremely poor. They have not been able to troubleshoot or solve my problem. Furthermore, the available support hours are not compatible with the average persons work day which means it is very difficult to get the device working properly. I would welcome the opportunity to discuss my problems/issues with the limited support available with the person responsible for support of Nokia devices and the windows phone OS. Thank you, Which Country Does Nokia Belong to | Nokia Country Of Origin | WhichCountry.co Which Country Does Nokia Belong to 50 SHARES Nokia is a Multinational Communication and IT Company and and the fastest growing and much popular organization. From its official logo it is clearly observed that it is connecting people, means it is paying a major role in the communication sector and people prefer to use the products made by this company.

From the start of 1998 till the end of 2012, Nokia was the Largest Mobile Phone supplier all over the world. Principal Products: Networks Internet Services It is also providing applications such as games, music, messaging and media. The most important thing which provided by Nokia is the provision of digital maps and navigation devices through its purely owned subsidiary Navteq. Totally free of cost. Nokia is the biggest cellular company having more than 101,982 Employees around the 120 different countries. At present it is the 2nd largest mobile phone company after Samsung by unit sales in 2012, Q: From Which Country Nokia Belongs and what is nokia country of origin? Ans: Basically Nokia corporation belongs to FINLAND. From the Sale in more than 150 countries it earned the revenue of €30 billion.

The general information relating to Finland is as follows: Official Name : Republic Of Finland Capital : Helsinki Official Languages : Finnish and Swedish Total Area : 338,424 square Kilo Meters Official Currency : Euro Nokia Corporation - Company Profile, Information, Business Description, History, Background Information on Nokia Corporation Nokia Corporation - Company Profile, Information, Business Description, History, Background Information on Nokia Corporation Keilalahdentie 4 Finland Company Perspectives By connecting people, we help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people--both when they are far apart and face-to-face--and also bridges the gap between people and the information they need. History of Nokia Corporation Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data products in consumer and corporate markets. The Multimedia segment sells mobile gaming devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions group develops wireless systems for use in the corporate sector. Wireless switching and transmission equipment is sold through the company's Networks division.

Nokia operates 15 manufacturing facilities in nine countries and maintains research and development facilities in 12 countries. 19th-Century Origins Originally a manufacturer of pulp and paper, Nokia was founded as Nokia Company in 1865 in a small town of the same name in central Finland. Nokia was a pioneer in the industry and introduced many new production methods to a country with only one major natural resource, its vast forests. As the industry became increasingly energy-intensive, the company even constructed its own power plants. But for many years, Nokia remained an important yet static firm in a relatively forgotten corner of northern Europe. Nokia shares were first listed on the Helsinki exchange in 1915. The first major changes in Nokia occurred several years after World War II. Despite its proximity to the Soviet Union, Finland has always remained economically connected with Scandinavian and other Western countries, and as Finnish trade expanded Nokia became a leading exporter. During the early 1960s Nokia began to diversify in an attempt to transform the company into a regional conglomerate with interests beyond Finnish borders. Unable to initiate strong internal growth, Nokia turned its attention to acquisitions.

The government, however, hoping to rationalize two underperforming basic industries, favored Nokia's expansion within the country and encouraged its eventual merger with Finnish Rubber Works, which was founded in 1898, and Finnish Cable Works, which was formed in 1912, to form Nokia Corporation. When the amalgamation was completed in 1966, Nokia was involved in several new industries, including integrated cable operations, electronics, tires, and rubber footwear, and had made its first public share offering. In 1967 Nokia set up a division to develop design and manufacturing capabilities in data processing, industrial automation, and communications systems. The division was later expanded and made into several divisions, which then concentrated on developing information systems, including personal computers and workstations, digital communications systems, and mobile phones. Nokia also gained a strong position in modems and automatic banking systems in Scandinavia. Oil Crisis, Corporate Changes: 1970s Nokia continued to operate in a stable but parochial manner until 1973, when it was affected in a unique way by the oil crisis.

Years of political accommodation between Finland and the Soviet Union ensured Finnish neutrality in exchange for lucrative trade agreements with the Soviets, mainly Finnish lumber products and machinery in exchange for Soviet oil. By agreement, this trade was kept strictly in balance. But when world oil prices began to rise, the market price for Soviet oil rose with it. Balanced trade began to mean greatly reduced purchasing power for Finnish companies such as Nokia. Although the effects were not catastrophic, the oil crisis did force Nokia to reassess its reliance on Soviet trade (about 12 percent of sales) as well as its international growth strategies. Several contingency plans were drawn up, but the greatest changes came after the company appointed a new CEO, Kari Kairamo, in 1975. Kairamo noted the obvious: Nokia was too big for Finland. The company had to expand abroad. He studied the expansion of other Scandinavian companies (particularly Sweden's Electrolux) and, following their example, formulated a strategy of first consolidating the company's business in Finland, Sweden, Norway, and Denmark, and then moving gradually into the rest of Europe. After the company had improved its product line, established a reputation for quality, and adjusted its production capacity, it would enter the world market.

Meanwhile, Nokia's traditional, heavy industries were looking increasingly burdensome. It was feared that trying to become a leader in electronics while maintaining these basic industries would create an unmanageably unfocused company. Kairamo thought briefly about selling off the company's weaker divisions, but decided to retain and modernize them. He reasoned that, although the modernization of these low-growth industries would be very expensive, it would guarantee Nokia's position in several stable markets, including paper, chemical, and machinery productions, and electrical generation. For the scheme to be practical, each division's modernization would have to be gradual and individually financed. This would prevent the bleeding of funds away from the all-important effort in electronics while preventing the heavy industries from becoming any less profitable. With each division financing its own modernization, there was little or no drain on capital from other divisions, and Nokia could still sell any group that did not succeed under the new plan. In the end, the plan prompted the machinery division to begin development in robotics and automation, the cables division to begin work on fiber optics, and the forestry division to move into high-grade tissues. Rise of Electronics: 1980s Nokia's most important focus was development of the electronics sector.

Over the course of the 1980s, the firm acquired nearly 20 companies, focusing especially on three segments of the electronics industry: consumer, workstations, and mobile communications. Electronics grew from 10 percent of annual sales to 60 percent of revenues from 1980 to 1988. In late 1984 Nokia acquired Salora, the largest color television manufacturer in Scandinavia, and Luxor, the Swedish state-owned electronics and computer firm. Nokia combined Salora and Luxor into a single division and concentrated on stylish consumer electronic products, since style was a crucial factor in Scandinavian markets. The Salora-Luxor division was also very successful in satellite and digital television technology. Nokia purchased the consumer electronics operations of Standard Elektrik Lorenz A.G. from Alcatel in 1987, further bolstering the company's position in the television market to the third largest manufacturer in Europe. In early 1988 Nokia acquired the data systems division of the Swedish Ericsson Group, making Nokia the largest Scandinavian information technology business.

Although a market leader in Scandinavia, Nokia still lacked a degree of competitiveness in the European market, which was dominated by much larger Japanese and German companies. Kairamo decided, therefore, to follow the example of many Japanese companies during the 1960s (and Korean manufacturers a decade later) and negotiate to become an original equipment manufacturer, or OEM, to manufacture products for competitors as a subcontractor. Nokia manufactured items for Hitachi in France, Ericsson in Sweden, Northern Telecom in Canada, and Granada and IBM in Britain. In doing so it was able to increase its production capacity stability. There were, however, several risks involved, those inherent in any OEM arrangement. Nokia's sales margins were naturally reduced, but of greater concern, production capacity was built up without a commensurate expansion in the sales network. With little brand identification, Nokia feared it might have a difficult time selling under its own name and become trapped as an OEM. In 1986 Nokia reorganized its management structure to simplify reporting efforts and improve control by central management. The company's 11 divisions were grouped into four industry segments: electronics; cables and machinery; paper, power, and chemicals; and rubber and flooring.

In addition, Nokia won a concession from the Finnish government to allow greater foreign participation in ownership. This substantially reduced Nokia's dependence on the comparatively expensive Finnish lending market. Although there was growth throughout the company, Nokia's greatest success was in telecommunications. Having dabbled in telecommunications in the 1960s, Nokia cut its teeth in the industry by selling switching systems under license from a French company, Alcatel. The Finnish firm got in on the cellular industry's ground floor in the late 1970s, when it helped design the world's first international cellular system. Named the Nordic Mobile Telephone (NMT) network, the system linked Sweden, Denmark, Norway, and Finland. A year after the network came on line in 1981, Nokia gained 100 percent control of Mobira, the Finnish mobile phone company that would later become its key business interest as the Nokia Mobile Phones division. Mobira's regional sales were vastly improved, but Nokia was still limited to OEM production on the international market; Nokia and Tandy Corporation, of the United States, built a factory in Masan, South Korea, to manufacture mobile telephones.

These were sold under the Tandy name in that company's 6,000 Radio Shack stores throughout the United States. In 1986, eager to test its ability to compete openly, Nokia chose the mobile telephone to be the first product marketed internationally under the Nokia name; it became Nokia's "make or break" product. Unfortunately, Asian competitors began to drive prices down just as Nokia entered the market. Other Nokia products gaining recognition were Salora televisions and Luxor satellite dishes, which suffered briefly when subscription programming introduced broadcast scrambling. The company's expansion, achieved almost exclusively by acquisition, had been expensive. Few Finnish investors other than institutions had the patience to see Nokia through its long-term plans. Indeed, more than half of the new shares issued by Nokia in 1987 went to foreign investors. Nokia moved boldly into Western markets; it gained a listing on the London exchange in 1987 and was subsequently listed on the New York exchange. Crises of Leadership, Profitability in the Late 1980s and Early 1990s Nokia's rapid growth was not without a price.

In 1988, as revenues soared, the company's profits, under pressure from severe price competition in the consumer electronics markets, dropped. Chairman Kari Kairamo committed suicide in December of that year; not surprisingly, friends said it was brought on by stress. Simo S. Vuorileto took over the company's reins and began streamlining operations in the spring of 1988. Nokia was divided into six business groups: consumer electronics, data, mobile phones, telecommunications, cables and machinery, and basic industries. Vuorileto continued Kairamo's focus on high-tech divisions, divesting Nokia's flooring, paper, rubber, and ventilation systems businesses and entering into joint ventures with companies such as Tandy Corporation and Matra of France (two separate agreements to produce mobile phones for the U.S. and French markets). In spite of these efforts, Nokia's pretax profits continued to decline in 1989 and 1990, culminating in a loss of $102 million in 1991. Industry observers blamed cutthroat European competition, the breakdown of the Finnish banking system, and the collapse of the Soviet Union.

But, notwithstanding these difficulties, Nokia remained committed to its high-tech orientation. Late in 1991, the company strengthened that dedication by promoting Jorma Ollila from president of Nokia-Mobira Inc. (renamed Nokia Mobile Phones Ltd. the following year) to group president. Leading the Telecommunications Revolution: Mid-1990s and Beyond Forbes's Fleming Meeks credited Ollila with transforming Nokia from "a moneylosing hodgepodge of companies into one of telecommunications' most profitable companies." Unable to find a buyer for Nokia's consumer electronics business, which had lost nearly $1 billion from 1988 to 1993, Ollila cut that segment's workforce by 45 percent, shuttered plants, and centralized operations. Having divested Nokia Data in 1991, Nokia focused further on its telecommunications core by selling off its power unit in 1994 and its television and tire and cable units the following year. The new leader achieved success in the cellular phone segment by bringing innovative products to market quickly with a particular focus on ever smaller and easier-to-use phones featuring sleek Finnish design.

Nokia gained a leg up in cellphone research and development with the 1991 acquisition of the United Kingdom's Technophone Ltd. for $57 million. The company began selling digital cellular phones in 1993. Ollila's tenure brought Nokia success and with it global recognition. The company's sales more than doubled, from FIM 15.5 billion in 1991 to FIM 36.8 billion in 1995, and its bottom line rebounded from a net loss of FIM 723 million in 1992 to a FIM 2.2 billion profit in 1995. Securities investors did not miss the turnaround: Nokia's market capitalization multiplied ten times from 1991 to 1994. In late 1995 and early 1996, Nokia suffered a temporary setback stemming from a shortage of chips for its digital cellular phones and a resultant disruption of its logistics chain. The company's production costs rose and profits fell. Nokia was also slightly ahead of the market, particularly in North America, in regard to the shift from analog to digital phones.

As a result, it was saddled with a great number of digital phones it could not sell and an insufficient number of analog devices. Nevertheless, Nokia had positioned itself well for the long haul, and within just a year or two it was arch-rival Motorola, Inc. that was burdened with an abundance of phones it could not sell, analog ones, as Motorola was slow to convert to digital. As a result, by late 1998, Nokia had surpassed Motorola and claimed the top position in cellular phones worldwide. Aiding this surge was the November 1997 introduction of the 6100 series of digital phones. This line proved immensely popular because of the phones' small size (similar to a slim pack of cigarettes), light weight (4.5 ounces), and superior battery life. First introduced in the burgeoning mobile phone market in China, the 6100 soon became a worldwide phenomenon. Including the 6100 and other models, Nokia sold nearly 41 million cellular phones in 1998.

Net sales increased more than 50 percent over the previous year, jumping from FIM 52.61 billion ($9.83 billion) to FIM 79.23 billion ($15.69 billion). Operating profits increased by 75 percent, while the company's skyrocketing stock price shot up more than 220 percent, pushing Nokia's market capitalization from FIM 110.01 billion ($20.57 billion) to FIM 355.53 billion ($70.39 billion). Not content with conquering the mobile phone market, Nokia began aggressively pursuing the mobile Internet sector in the late 1990s. Already on the market was the Nokia 9000 Communicator, a personal all-in-one communication device that included phone, data, Internet, e-mail, and fax retrieval services. The Nokia 8110 mobile phone included the capability to access the Internet. In addition, Nokia was the first company to introduce a cellular phone that could be connected to a laptop computer to transmit data over a mobile network.

To help develop further products, Nokia began acquiring Internet technology companies, starting with the December 1997, $120 million purchase of Ipsilon Networks Inc., a Silicon Valley firm specializing in Internet routing. One year later, Nokia spent FIM 429 million ($85 million) for Vienna Systems Corporation, a Canadian firm focusing on Internet Protocol telephony. Acquisitions continued in 1999, when a further seven deals were completed, four of which were Internet-related. Meanwhile, net sales increased a further 48 percent in 1999, while operating profits grew by 57 percent; riding the late 1990s high-tech stock boom, the market capitalization of Nokia took another huge leap, ending the year at EUR 209.37 billion ($211.05 billion). Nokia's share of the global cellular phone market increased from 22.5 percent in 1998 to 26.9 percent in 1999, as the company sold 76.3 million phones in 1999.

Nokia's ascendance to the top of the wireless world by the end of the 1990s could be traced to the company being able to consistently, over and over again, come out with high-margin products superior to those of its competitors and in tune with market demands. The continuation of this trend into the 21st century was by no means certain as the increasing convergence of wireless and Internet technologies and the development of the third generation (3G) of wireless technology (which followed the analog and digital generations and which was slated to feature sophisticated multimedia capability) were predicted to open Nokia up to new and formidable competitors. Perhaps the greatest threat was that chipmakers such as Intel would turn mobile phones into commodities just as they had previously done with personal computers; the days of the $500 Nokia phone were potentially numbered. Nevertheless, Nokia's 25 percent profit margins were enabling it to spend a massive $2 billion a year on research and development and continue to churn out innovative new products, concentrating on the various standards being developed for 3G wireless networks.

A Two-Pronged Approach in the 21st Century Mobile communications developed along two broad fronts during the first years of the century, both of which played to Nokia's advantage, ensuring that the company remained the leader of its industry. The evolution of handsets into multimedia devices ushered in by 3G technology meant that Nokia could continue to rely on marketing expensive, sophisticated handsets. The days of the $500 Nokia phone gave way to the days of increasingly more expensive phones, such as the Nokia N90, a unit featuring a camera with Carl Zeiss optics, video-recording capabilities, and Internet access. Nokia could count on a substantial share of the high end of the market, a segment that continued to thrive midway through the decade, but the company's greatest strength was in the lower end of the market. In countries such as China, Brazil, and India there was a tremendous demand for inexpensive mobile phones, with analysts expecting 50 percent of the one billion handsets sold between 2005 and 2010 to be sold in developing economies.

Industry observers believed there were only two companies in the world that could seriously compete for the estimated 800-million-unit-per year market for inexpensive handsets: Motorola and Nokia. Rivals such as Samsung, Sony Ericsson, and LG Electronics preferred to confine their activities to the high end of the market, while emerging low-cost producers lacked the manufacturing efficiencies enjoyed by Nokia and Motorola. Against the backdrop of favorable market trends supporting Nokia's entrenched position, the company experienced a rare event in its modern history: a change in leadership. After a decade-and-a-half at the helm, CEO Ollila announced his retirement, effective June 2006. His replacement was a 25-year Nokia veteran named Olli-Pekka Kallasvuo, a lawyer by training whom Fortune, in that magazine's October 31, 2005 issue, described as so taciturn that "he can seem like an extra from an Ingmar Bergman movie." Kallasvuo, who was promoted from his position as the head of the handset division, inherited an impressively capable company whose greatest challenge was contending with Motorola for the low end of the market and beating back competitors for control of the high end of the market.

"Nokia is a dynamic company in a fast-changing and fluid environment," Kallasvuo said in a November 29, 2005 interview with the South China Morning Post. "I look forward to working together with our team to help Nokia shape the future of mobile communications at a pivotal time for the industry." Principal Subsidiaries Nokia Holding Inc.; Nokia Products Limited (Canada); Nokia IP Telephony Corporation (Canada); Nokia Telecommunications Inc.; Nokia Inc.; Nokia (China) Investment Co. Ltd.; Nokia (H.K.) Limited (Hong Kong); Nokia (Ireland) Ltd.; Nokia Australia Pty Limited; Nokia Asset Management Oy; Nokia Austria GmbH; Nokia Danmark A/S (Denmark); Nokia Do Brasil Ltda. (Brazil); Nokia Do Brasil Tecnologia Ltda. (Brazil); Nokia Finance International B.V. (Netherlands); Nokia France; Nokia GmbH (Germany); Nokia India Private Limited; Nokia Italia Spa (Italy); Nokia Korea Ltd.; Nokia Mobile Phones; Nokia Networks; Nokia Norge AS (Norway); Nokia Oyj; Nokia Pte Ltd. (Singapore); Nokia Spain, S.A.; Nokia Svenska AB (Sweden); Nokia U.K.

Ltd.; Nokia Ventures Organization; Bave Tartum (U.K.); Beijing Nokia Hangxing Telecommunications Systems Co., Ltd. (China); Doctortel--Assistencia De Telecomunicaes S.A. (Portugal); Funda Ao Nokia De Ensino (Brazil); Instituto Nokia De Tecnologia (Brazil); Nokia (M) Sdn Bhd (Malaysia); Nokia Argentina S.A.; Nokia Belgium NV; Nokia Capitel Telecommunications Ltd. (China); Nokia Ecuador S.A.; Nokia Hellas Communications S.A.; Nokia Hungary Kommunikacios Korlatolt Felelossegu Tarsasag (Hungary); Nokia Israel Ltd.; Nokia Middle East (United Arab Emirates; Nokia Nederland B.V. (Netherlands); Nokia Poland Sp Z.O.O.; Nokia Portugal S.A.; Nokia Private Joint Stock Company (Russia); Nokia Research Center; Nokia River Golf Ry; Nokia S.A. (Columbia); Nokia Servicios, S.A. de C.V. (Mexico); Nokia Technology GmbH (Germany); Nokianvirta Oy; Oy Scaninter Nokia Ltd.; Pointo Nokia Oy. Principal Competitors Telefonaktiebolaget LM Ericsson; Motorola, Inc.; Siemens AG; Sony Corporation.

Chronology 1865 Nokia is founded as a maker of pulp and paper. 1898 Finnish Rubber Works is founded. 1912 Finnish Cable Works is formed. 1915 Nokia shares are first listed on the Helsinki exchange. 1967 Nokia merges with Finnish Rubber Works and Finnish Cable Works to form Nokia Corporation. 1979 Mobira Oy is formed as a mobile phone company. 1981 The first international cellular system, the Nordic Mobile Telephone network, comes on line, having been developed with the help of Nokia. 1982 Nokia acquires Mobira, which later becomes the Nokia Mobile Phones division. 1986 Company markets internationally the first Nokia mobile telephone. 1993 The first Nokia digital cellular phone hits the market. 1998 Nokia surpasses Motorola as the world's number one maker of mobile phones. 2002 Nokia introduces the first third-generation compliant mobile phone. 2005 Jorma Ollila announces he will step down as chief executive officer in 2006.

Additional Details Sales: EUR 29.26 billion (2004) Stock Exchanges: New York Helsinki Stockholm Frankfurt Ticker Symbol: NOK NAIC: 334210 Telephone Apparatus Manufacturing; 334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing; 334310 Audio and Video Equipment Manufacturing; 334419 Other Electronic Component Manufacturing; 517212 Cellular and Other Wireless Telecommunications; 517910 Other Telecommunications; 551112 Offices of Other Holding Companies Further Reference Angell, Mike, "Nokia Banking on New Phone Features, Cameras, E-Mail Access," Investor's Business Daily, December 3, 2002, p. A7. Baker, Stephen, and Kerry Capell, "The Race to Rule Mobile," Business Week, February 21, 2000, pp. 58-60. Baker, Stephen, Roger O.

Crockett, and Neil Gross, "Nokia: Can CEO Ollila Keep the Cellular Superstar Flying High?," Business Week, August 10, 1998, pp. 54-60. "Bellaby, Mara D., "Nokia Acquires Intellisynch," America's Intelligence Wire, November 17, 2005. Bensinger, Ari, "The Call on Nokia," Business Week Online, January 7, 2003. Berkman, Barbara N., "Brainstorming in the Sauna," Electronic Business, November 18, 1991, pp. 71-74. ------, "Sagging Profits Spark Identity Crisis at Nokia," Electronic Business, March 4, 1991, pp. 57-59. Burt, Tim, and Greg McIvor, "Land of Midnight Mobiles: A Former Toilet-Paper Maker from Finland Has Become the World's Largest Manufacturer of Mobile Phones," Financial Times, October 30, 1998, p. 18.

Edmondson, Gail, Peter Elstrom, and Peter Burrows, "At Nokia, a Comeback--and Then Some," Business Week, December 2, 1996, p. 106. Fox, Justin, "Nokia's Secret Code," Fortune, May 1, 2000, pp. 161-64+. Furchgott, Roy, "Nokia Signals Desire for Higher Profile," ADWEEK Eastern Edition, June 12, 1995, p. 2. Guth, Robert A., "Nokia Fights for Toehold in Japan's Cell-Phone Market," Wall Street Journal, June 26, 2000, p. A26. Heard, Joyce, and Keller, John J., "Nokia Skates into High Tech's Big Leagues," Business Week, April 4, 1988, pp. 102-03. Jacob, Rahul, "Nokia Fumbles, But Don't Count It Out," Fortune, February 19, 1996, pp. 86-88.

Kharif, Olga, "Will New Phones Boost Nokia's Signal?," Business Week Online, December 11, 2002. La Rossa, James, Jr., "Nokia Knocks on U.S. Door," HFD--The Weekly Home Furnishings Newspaper, February 10, 1992, pp. 66-67. Lemola, Tarmo, and Raimo Lovio, Miksi Nokia, Finland, Porvoo, Sweden: W. Sööderströöm, 1996, 211 p. Lineback, J. Robert, "Nokia's Mobile Phone Unit Is Ringing Bells," Electronic Business Buyer, June 1994, pp. 60-62. Meeks, Fleming, "Watch Out, Motorola," Forbes, September 12, 1994, pp. 192-94. "Nokia and CommTel Expand Broadband in the Pacific," PR Newswire, December 28, 2005. "Nokia Expands Production in China," TelecomWeb News Digest, December 1, 2005.

"Nokia Launches New 3G Phones," eWeek, December 1, 2005. "Not Finnished Yet," Economist, February 9, 1991, p. 73. Perez, Bien, "Nokia Adapts to Swift Changes," South China Morning Post, November 29, 2005. Reinhardt, Andy, "Cell Phones for the People," Business Week, November 7, 2005, p. 26. ------, "A Whole New Wireless Order," Business Week, October 31, 2005, p. MTL2. Salameh, Asad, "Nokia Repositions for a Major Cellular Marketing Initiative," Telecommunications, June 1992, p. 43. Schwartz, Nelson D., "The Man Behind Nokia's Comeback," Fortune, October 31, 2005, p. 39. Seyfer, Jessie, "Nokia to Acquire Intellisync," San Jose Mercury News, November 17, 2005.

Silberg, Lurie, "A Brand Apart," HFD--The Weekly Home Furnishings Newspaper, September 5, 1994, pp. 54-55. "These Sexy Gadgets Will Rock Next Year," Economic Times of India, December 20, 2005. Williams, Elaine, "100-Year-Old Nokia Experiences Fast-Growth Pains," Electronic Business, June 26, 1989, pp. 111-14. User Contributions:

Question: In which country is the HQ of the mobile phone company Nokia?
Answer: Finland